Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the companys operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Results Flexible Budget Planning Budget Flights (q) 62 62 60 Revenue ($360.00q) $ 16,400 $ 22,320 $ 21,600 Expenses: Wages and salaries ($3,500 + $88.00q) 8,920 8,956 8,780 Fuel ($33.00q) 2,210 2,046 1,980 Airport fees ($820 + $33.00q) 2,751 2,866 2,800 Aircraft depreciation ($10.00q) 620 620 600 Office expenses ($230 + $1.00q) 460 292 290 Total expense 14,961 14,780 14,450 Net operating income $ 1,439 $ 7,540 $ 7,150 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. Required: 1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)